THE PRESIDENT: Number 12a or b?

SIR DAVID MAXWELL-FYFE: Number 12, My Lord. That is the original one; Page 52, My Lord.

“The Central Directorate of the supreme Reich authorities, ordered in case of war, has influenced the development and the activity of the war economy organization to such an extent that it is necessary to discuss this matter in detail. The foundations had already been laid, for the central organization of the supreme Reich authorities in the event of a war prior to 1933 in many discussions and decrees, but it was radically altered when the National Socialists came into power, and especially by the death of Reich President Von Hindenburg. The latest orders were decreed in the Reich Defense Law of 21 May 1935, supposed to be published only in case of war but already declared valid for carrying out war preparations. As this law fixed the duties of the Armed Forces and the other Reich authorities in case of war, it was also the fundamental ruling for the development and activity of the war economy organization.” (Document 2353-PS)

And you will remember that on the same day the Defendant Schacht had been made Plenipotentiary for War Economy.

Did you appreciate at the time, Defendant, that that law was the fundamental ruling for the development and activity of the war economy organization?

VON NEURATH: Yes, but only in case of a war, that is, in case of mobilization.

SIR DAVID MAXWELL-FYFE: You see that the point that I am putting to you is that it had already been declared valid for carrying out war preparations. Didn’t you understand that it was a big step forward for war preparations?

VON NEURATH: Not at all. It was not a big step forward at all. It was only the establishing of the necessary measures in case of a war. In every country you have to guarantee the co-operation of the various offices in the event of an attack.

SIR DAVID MAXWELL-FYFE: That is your view. Now, at this time, up to May 1935, is it correct that the German Foreign Office was still staffed by diplomats or Foreign Office officials of the older school and had not yet been invaded by the products of the Bureau Ribbentrop?

VON NEURATH: Yes.